- Prime rents; at an average of 29.37 €/sqm, an increase of approx. 4.0%

- Prime yields; at approx. 3.30% these have further decreased and are reaching their all-time low.

The vacancy rate also decreased in all Top 7 markets by a total of one percentage point and was at 4.7% by the end of the year, even though there is a broad range between Frankfurt (8,9%) and Stuttgart (2,3%).

For 2018, we expect:

- A similarly high floor space turnover, even if the strong focus on CBDs up to now is shifting towards outskirts/arterial roads/development areas.

- A significant decline of vacancy due to a strong take-up as well as refurbishment activities (including repurposing for residential use).

- A slight increase of prime rents in the new-build/first-time occupancy segment (+1.5%), for 2018 – the excellent economic development will be noticed in existing properties, where the average rents will increase by approx. 2.5% in new contracts or contract extensions (after refurbishment).

- By the middle of 2018 the yields will continue to sink to approx. 3.25% in the Top 7 markets because of the increasingly competitive position, premium markups for trophy buildings and portfolios will become the norm.

No question: the socio-economic signs for 2018 could not be better, the quantifiable risks are included in this: no significant interest rate increase is currently expected, but instead an increasingly competitive market, at which the quality of the properties is slightly declining.

Remember: he who demands or pays the highest value, doesn’t always act rationally.